New Texas Law Offers Huge Tax Break for Homeowners and Renters

When it comes to Texas laws, Texas property taxes is the oldest still on the books today. In fact, the property tax and homestead exemption laws in Texas date back to 1845, before we were even a state. These laws were drawn from Spanish, Mexican, and English common law back when Texas was still its own Republic.

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And here’s the wild part: even though the law has roots going back nearly two centuries, it seems like it gets adjusted every election cycle. That’s part of why I pay attention to it. The other reason? It hits me personally.

Why I'm So Invested in This

When I first bought my home, I was paying just over $1,200 a year in property taxes. Today? It’s pushing $4,000. And on top of that, I’m also responsible for paying the taxes on my late father’s and grandparents’ properties. That adds up quick, and I'm not the only one feeling the squeeze.

Every time I get together with family, friends, or neighbors, the conversation eventually turns to property taxes. We all ask the same questions: Why do our taxes keep going up? Where’s the money going? Why does it feel like we’re getting taxed more and seeing less?

Photo by: Texas.gov

Renters Pay, Too, Even If Indirectly

And let me say this, property taxes don’t just impact homeowners. If you rent, you’re still paying property taxes, they’re just built into your rent. Landlords have to cover their own rising tax bills, and that cost trickles down to tenants. So even if you don’t own your home, you’re still feeling the weight of Texas property taxes.

Governor Abbott’s Big News

This past Monday, Governor Greg Abbott signed into law a package of new property tax relief bills, and if his numbers hold up, they could be a game changer.

“When I became Governor, the homestead exemption was $15,000,” said Governor Abbott. “With Senate Bill 4, the homestead exemption is now $140,000, an almost 1,000% increase. Seniors’ homestead exemption now goes all the way up to $200,000.” Source: The State of Texas Governor

He also said, "Texas spent $50 billion on property tax relief this session, something no other state has done before." Abbott emphasized that while the state doesn’t directly collect property taxes (that’s done by local governments i.e.: city, county), these new laws are aimed at helping Texans by lowering school district taxes and capping how much local governments can raise your tax bill.

So, while this won’t erase your entire tax bill, it could significantly reduce the portion you pay, especially if you’re a homeowner or senior.

Still, I’ve Got Questions

As exciting as all of this sounds, I still wonder: will city taxing raise the rates again next year? Will we actually see the savings? Will the money that's collected be used to fix the things they say it’s supposed to do?

This new law gives me hope, however, I’m not done watching.